Bahrain is the latest GCC nation to seek funds in the international debt markets, launching a two-tranche offering amid a busy period for regional sovereign debt. This move follows recent large bond sales by Kuwait, Abu Dhabi, and Saudi Arabia.
The new issuance is structured into two parts:
An 8-year dollar-denominated sukuk (Islamic bond) issued through the CBB International Sukuk Programme Company, with initial pricing expected near 6.25% and maturing in February 2034.
A 12-year conventional bond issued by the Ministry of Finance and National Economy, with initial pricing expected around 7% and maturing in October 2037.
Both debt instruments are expected to receive a B+/B+ rating and will be listed on the London Stock Exchange. This fundraising effort is anticipated to be between $2 billion and $3 billion for 2025, as projected by Moody’s, and will primarily be used by Bahrain to refinance existing debt due to pressure on its national finances. A consortium of regional and international banks, including Citi, JP Morgan, and Standard Chartered, are acting as joint bookrunners for the sale.
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